Distributions from a private company

Discussion in 'Professional Trading' started by m22au, Apr 12, 2004.

  1. m22au

    m22au

    I am considering setting up a US company to trade through.

    The three ways of paying myself (the individual) from the company are:

    a. salary
    b. dividends
    c. loan from the company to myself

    If I did one of the first two, I would have to pay personal income tax.

    What are the US tax ramifications of the third option - loaning money to myself (individual) from the company?
     
  2. funky

    funky

    see my post on private annuities.... :D
     
  3. m22au

    m22au

    Thanks for your reply funky.

    I read your thread and it seems to be more about non-US companies.

    Any ideas about the tax treatment (if any) of loans by US companies to shareholders?
     
  4. funky

    funky

    i know that you can setup a c-corp and create a pension plan of any sort. then that pension can loan money out for purchases. but there is no legal way around paying taxes. maybe a way to defer them but this can be a very complicated structure, and thus very expensive and possibly prohibitive.